ARTICLE: How to buy a *USED* Car in India

This is a discussion on ARTICLE: How to buy a *USED* Car in India within On buying a car, part of the Team-BHP Advice category; Originally Posted by Mad Max
I was browsing through a car seller site and found a car that interests me. ...

I was browsing through a car seller site and found a car that interests me. But the car is registered in MH though it's plying in KA. If I want to buy this car, what should I expect?

1. Do I have to pay the re-registration charges even if I don't want the registration to change to KA number?
2. Are there such provisions for buying a used car that is not KA registered in KA and just changing ownership?

Please help / advise.

You can't change ownership of a MH car in KA without a NOC from the MH RTO and paying re-registration life tax.

The first thing the KA RTO will do is gleefully collect the life tax and then give you a KA RC book with your MH number on it. Which means you or the original owner will not be able to collect a tax refund in Maharashtra till such time as you get a KA number allotted to you. See the crazy procedure here.

You can't change ownership of a MH car in KA without a NOC from the MH RTO and paying re-registration life tax.

The first thing the KA RTO will do is gleefully collect the life tax and then give you a KA RC book with your MH number on it. Which means you or the original owner will not be able to collect a tax refund in Maharashtra till such time as you get a KA number allotted to you. See the crazy procedure here.

I have finalized a used Grand Vitara for myself. Unfortunately, the car is owned under a company's name that the seller claims has always "kept" with him. The seller wants me to pay him in cash and he is ready to give me a receipt for it.

He does not have an authority letter from his company stating that he can accept payments (token or full payment) for the car, so technically that would be a meaningless receipt that he would be writing to me, right?

He does however say that he will get the necessary letters from his company stating that they're selling the car to me.

The deal is likely to break down because I am NOT willing to transfer the money to a bank account that is not under company's name. It would be sad to miss the deal because the car is in a really good shape.

I have finalized a used Grand Vitara for myself. Unfortunately, the car is owned under a company's name that the seller claims has always "kept" with him. The seller wants me to pay him in cash and he is ready to give me a receipt for it.

He does not have an authority letter from his company stating that he can accept payments (token or full payment) for the car, so technically that would be a meaningless receipt that he would be writing to me, right?

He does however say that he will get the necessary letters from his company stating that they're selling the car to me.

The deal is likely to break down because I am NOT willing to transfer the money to a bank account that is not under company's name. It would be sad to miss the deal because the car is in a really good shape.

Maybe you can ask the seller to get a NOC from the company. Alternatively, the form 29 (or whatever the RTO form is) will need to be signed and stamped by the company to transfer the car in your name. Ask them to initiate the signatures then you can sign and pay.

I don't see any issue but I would advise you to do background check and due diligence.

Need suggestions from fellow BHPians, with production being discontinued, is it sensible to buy a used petrol ritz? I intend to keep the car for atleast three years. After that will it still command some resale value or I have to dispose it at a throw away price?
Would buying a used i10 (not Grand) make more sense?
Thanks in advance.

Need suggestions from fellow BHPians, with production being discontinued, is it sensible to buy a used petrol ritz? I intend to keep the car for atleast three years. After that will it still command some resale value or I have to dispose it at a throw away price?
Would buying a used i10 (not Grand) make more sense?
Thanks in advance.

Parts for even the long discontinued Maruti 800 are easily available even now.

Go ahead and buy the Ritz - it should be good for the next quite a few years and if you can, buy a Diesel Ritz, as the diesel variant will be sold for Taxi use for a long, long time.

Folks - I was about to buy a brand new Liva petrol due to its reliability and simplicity. But came across Laura for 3 lakhs and itís tempting. Itís a 2008 January registered Laura TDI, 90k on ODO with manual transmission. Car appears to be in an excellent condition and company maintained. Car owner is a biker and I assume he has kept his car well. Laura is on sale as he is upgrading to a luxury Sedan.

I had a Fabia and it served me well without any issues for 5 years. I love Skoda cars for their build quality, luxury feel and driving pleasure.

If I buy the Laura would prefer to keep it for another 5 years. So, Iím bit worried about the availability of spares and reliability during the outstation trips due to its age. Btw, I donít mind spending 30k-40k per year to keep the car in good shape.

My usage is just 25kms per day and outstation trips once a month.

Now Iím completely confused. Should I go with Laura and take a risk OR stick to brand new Liva petrol?

But came across Laura for 3 lakhs and it’s tempting. It’s a 2008 January registered Laura TDI, 90k on ODO with manual transmission.

Now I’m completely confused. Should I go with Laura and take a risk OR stick to brand new Liva petrol?

If you want peaceful next 5 years, give the Laura a pass and pick the Liva petrol.

I was under a similar predicament when I came across a very well maintained Laura L&K AT, 2008 model, 8 Airbag and what not, 94k clicks on the ODO and maintained at the A.S.S. with records.
My cousin put some sense into my brain. A close to 100k kms Skoda is a time bomb waiting to explode. Parts costs are atrocious, and so is skilled labor at the A.S.S. You may want to pay a visit to the "Laura maintenance" thread once.

Also, a Fabia was a basic & simple car from Skoda (per Skoda standards). Do not compare the maintenance experience of a Fabia with a Laura.

A less than 60k run Laura will have a favorable consideration. 90k+ run, not so much.

Folks - I was about to buy a brand new Liva petrol due to its reliability and simplicity. But came across Laura for 3 lakhs and itís tempting. Itís a 2008 January registered Laura TDI, 90k on ODO with manual transmission.
===
I had a Fabia and it served me well without any issues for 5 years.
====
If I buy the Laura would prefer to keep it for another 5 years.
====
My usage is just 25kms per day and outstation trips once a month.

Now Iím completely confused. Should I go with Laura and take a risk OR stick to brand new Liva petrol?

If the Laura was under 40k kms odo, then it would have made some sense. But going by your requirements, i would suggest you go ahead and pick up the brand new Liva, it is a decent car, especially with the current face lift.

Skoda on the other hand would need constant watch, and even costly regular services. 2008 means it is almost an 8 year old car, things can fail and that is the last thing you want from reliability perspective.

I have finalized a used Grand Vitara for myself. Unfortunately, the car is owned under a company's name that the seller claims has always "kept" with him. The seller wants me to pay him in cash and he is ready to give me a receipt for it.

He does not have an authority letter from his company stating that he can accept payments (token or full payment) for the car, so technically that would be a meaningless receipt that he would be writing to me, right?

He does however say that he will get the necessary letters from his company stating that they're selling the car to me.

The deal is likely to break down because I am NOT willing to transfer the money to a bank account that is not under company's name. It would be sad to miss the deal because the car is in a really good shape.

I also bought a used Sunny recently. The car was registered in the name of company the person whom i bought it from worked for. The car was also under a financial lease from a financing firm. However, the car was being personally used by that guy.

I first paid him a token advance (20k or so) to that guy. Then he got an NOC from the finance firm, after having cleared his dues with them. After that he got the Form 29, form 30 and a sale confirmation letter signed and stamped (company) by his comapany authorised guys . I then paid the full amount to him, and he handed me the car and these documents.

I had shortlisted a car sold by a used car dealer (broker rather) and the car is still in the owner's name.
The dealer didn't really disclose much about the owner. I didn't ask much either.
Upon some digging (had to find it myself, not disclosed by the used car dealer), got to know that the owner had exchanged the car with an authorized dealer (of different brand) when he bought a new car. The authorized dealer has forwarded the car to this used car dealer.

Is it safe to go ahead with a deal like this or is it better to back out? TIA.

@theredliner - most park and sell type of used card dealers will get cars from different sources and this might also be one of their source. As far as you are happy with the condition of the car and also the price, you should be good. These dealers will have the required forms already signed by the original owner and initiate the transfer for you. Most dealers deal this way and I don’t see a reason to worry. However for your safety, make the payment via cheque and get receipt/letter from the dealer. Also talk to the guy, who works on the transfer and pay him a premium to get the transfer done as quickly as possible.

Don't pay more than a token advance till such time as the rto accepts the transfer of ownership application. Ideally do the transfer at the same rto where the car was registered.

Quote:

Originally Posted by cdmanju

@theredliner - most park and sell type of used card dealers will get cars from different sources and this might also be one of their source. As far as you are happy with the condition of the car and also the price, you should be good.

Thanks to both of you.

Since I will not be able to contact the owner directly, it will be difficult to know the reason for sale, some details like usage pattern etc. Also, getting service history from a service centre may be difficult. I'm really confused.

@hserus I really doubt that the dealer would move RTO application papers without full payment.